Grayscale Fund grew by 12k more BTC than was created this week

in LeoFinance4 years ago

Soon, Grayscale is going to own all of the bitcoin!

This past week Grayscale added 19,879 BTC to their Bitcoin Trust.

That number may not mean much to you on first glance, but keep in mind that bitcoin miners only produced 7,081 BTC during the week.

That means that Grayscale alone added almost 3x the weekly number of newly created BTC, and that's just one fund.

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But wait, there's more...

That newly added 19,879 BTC makes a total of 53,588 BTC added since the halving.

For some perspective, BTC miners have produced 39,544 BTC total since the halving.

Which means...

Grayscale has acquired 135% of all the newly created BTC since the halving!

And again, remember, this is just the demand from one fund... well sort of.

There is also the fact that Grayscale allows "in kind" transfers where people transfer them their bitcoin in exchange for shares of GBTC.

In this instance the same number of BTC is till bought, just not by one fund. It's bought by everyone who is transferring their BTC into Grayscale, which according to their latest filing was close to 80% of the newly added BTC.

Though keep in mind those shares are locked for 6 months, so anyone doing a like-kind transfer is locking up their bitcoin for 6 months.

The total BTC holdings for Grayscale now stands right around 400k BTC.

Ready for a fun fact?

If this trend continues, Grayscale will own 3.4% of the entire BTC supply by this January and 10% of the entire supply of BTC by the next halving in 2024.

How's that for a neat little mind blower?

Overall, the money flowing into Grayscale is a great proxy for institutional involvement as they are the ones buying these shares of GBTC from Grayscale.

Which means the institutions are really starting to show up.

Given so much of the supply is being locked up by one player, bitcoin is looking more and more like a coiled spring just waiting to be unwound.

Give us a nice little dip in the near term and then it's off the to races by the end of the year.

Stay informed my friends.

-Doc

Posted Using LeoFinance

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I'm excited to see all the institutional interest entering the space. Prominent investors/funds will only buy with these kinds of services. There's some pros and cons but weighting toward pros imo

Posted Using LeoFinance

Yep I agree. I think it is overwhelmingly bullish. Plus, it gives BTC more staying power as well. If big money is involved, they will do their part to get their people in positions of power (within governments) to see to it that bitcoin isn't regulated out of existence.

10% of the entire supply by 2024, wow, what a stat!

I don’t see how BTC doesn’t at least reach a new high by the end of this year, and potentially beyond $40,000 by end of this year.

Yes bring in the institutional investors. What massive accumulators! We can ride the wave of these whales like a little pilot fish, catching the peaks along with them in the coming two years of bull run..or just hodl til 2026 hey? I can only see this getting better and better for bitcoin. Thanks for the stats Doc.

It's amazing to see how much inflow has gone into Grayscale as of late, and it's definitely great to see more investors, retail or institutional, get into Bitcoin. Let's hope this'll prove to the rest of Wall Street (and Main Street) as to the power that Bitcoin has for the economy. Awesomely bullish spirits coming along!

On another note, I was a bit worried that maybe Grayscale has been building up a monopoly on Bitcoin investment funds. Justified, perhaps? They're certainly HODL'ing like there's no tomorrow 🚀!